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UPDATE: Canaccord Genuity Downgrades DragonWave to Hold, Lowers PT

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In a report published Friday, Canaccord Genuity downgraded its rating on DragonWave (NASDAQ: DRWI) from Speculative Buy to Hold, and lowered its price target from $4.50 to $2.25.

Canaccord Genuity noted, “Q3/F13 will miss expectations with revised guidance nearly $10 million below our previous estimate. DragonWave's reduced guidance and our view of soft carrier spending levels for at least the next six months suggest added risk to estimates. While we view the NSN acquisition positively from a strategic point of view, it adds a layer of complexity and thus, near-term uncertainty for investors. Alongside reduced estimates, we are lowering DragonWave to a HOLD (from Spec Buy) and our target price to US$2.25 from US$4.50 based on 0.3x EV/Sales.”

DragonWave closed on Thursday at $2.16.

Latest Ratings for DRWI

DateFirmActionFromTo
Jul 2014TD SecuritiesUpgradesReduceHold
Jul 2014HC Wainwright & Co.UpgradesNeutralBuy
May 2014HC WainwrightInitiates Coverage onNeutral

View More Analyst Ratings for DRWI
View the Latest Analyst Ratings

Posted-In: Canaccord GenuityAnalyst Color Downgrades Analyst Ratings

 

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